approvU for Bad Credit Mortgages

Bad credit scores are defined as below 620 or with a history of consistent late payments, collections, judgements, consumer proposals and bankruptcy. Credit scores range from 300 to 900. Anything over 620 can be considered good for a mortgage, assuming your credit history shows timely payments of your debts. 

Late payments, active or recent collections, judgements, bankruptcy and consumer proposals are considered “poor” for a mortgage. 

Reviewing your credit report regularly is advisable to address any issues impacting your ability to qualify for a mortgage.

Getting a mortgage with a bad credit record can be challenging but not impossible. Your bank (traditional lender) may not be the right place to get a mortgage with bad credit. Traditional lenders have strict credit requirements to qualify for a mortgage.

Some specialty lenders, called B-lenders or Alternative mortgage lenders, specialize in mortgages for borrowers with bad credit.

Unfortunately, you can’t go directly to these specialty lenders for a mortgage, like walking to your bank. You need a channel like approvU to access mortgages from these lenders. approvU even makes it easier, as it offers a one-stop for mortgages from these lenders, allowing you to search and apply for these mortgages from the comfort of your home, saving you time and money. 

Get the best mortgage for your unique situation now.

The specific things you will need to qualify for a mortgage with your bad credit situation will depend on your needs and lender preference.

But at the minimum, you will need to:

• Provide proof of a steady income stream
• Sufficient down payment of at least 20% of the house value or purchase price
• Debt obligations and liabilities that are within your financial capacity
• A property in acceptable condition

Again, these are just the basic requirements to qualify for a mortgage with bad credit. You want to ensure that you get the best mortgage deal with the least restrictive requirement, which is why it is essential to use approvU to shop the market. See what you can qualify for and what your minimum down payment is.

You need a minimum of 20% of the house value as your down payment to qualify for a self-employed mortgage. Each lender may have specific down payment requirements based on your situation and mortgage needs. For example, a lender may require you to put down at least 25% of the house value if you are buying a rental property or a 35% minimum down payment if the property is located in a rural community.

You can get pre-approved for a mortgage with your bad credit situation on approvU. 

Our algorithms can assess your house buying power in under 15 seconds. Also, we’ve built the required relationship with our lending partners to acknowledge the approvU pre-approval letter.

Get pre-approved today for a streamlined house shopping experience.

A credit score is one criterion lenders use to determine your eligibility for a mortgage.

Other factors lenders will consider are:

– Income sources

– Qualification ratios

– Down payment amount and sources

– Property type, nature and usage

– Other liens on the property

There are two ways to apply for a mortgage with bad credit.

One of these ways is by using a mortgage broker. There are countless mortgage brokers you can contact for your mortgage needs. Issues like less transparency, high service costs, less convenience and payment structure could affect your ability to make the right mortgage decisions. 

approvU is another channel. approvU offers a marketplace for you to search, apply, and close your mortgage conveniently in the comfort of your home. approvU shows the mortgage’s full cost and rate breakdowns and charges only a minimal fee to cover the platform’s costs. With approvU, the decision about your mortgage choice is yours to make, without the necessary outside influence of commission sales reps.

Yes, approvU makes applying for a mortgage with bad credit situations easy and convenient. You can search and apply for a mortgage online with approvU, like booking your favourite vacation on Booking.com or buying on Amazon.ca.

approvU instantly qualifies you against the criteria of its over 25 lenders, ensuring you get the best deal in the market.